Demotion Letter for Salary Deduction

The owners of a firm, company or industry have many tough decisions to make throughout the whole year. These decisions can be of various kinds. These decisions cover hiring the employees, amendments to policies, terminations, warnings, and demotions. The demotion can be voluntary or involuntary. Both need appropriate reasons. Additionally, the dates, times, titles are also important in demotion letters.

Sometimes there come financial crises on an organization or company. The financial breakdown is a serious setback. If the company suffers a setback, the employees also need to be cooperative with the employer rather than playing a blame game. Sometimes, cooperation and teamwork can make big issues resolved with ease. In this case, the employer needs quick and clear decision to bring everything in working position and to re-settle the whole company with the best possible efforts.

When a company suffers through a big loss, it needs to make big amendments in some rules and procedures. Sometimes, the employer needs to deduct salary. In this case, s/he has to write a demotion letter to concerning employees. Such letter must be positive and friendly. It should be clear in the reasons for this action. And, restoring policies must also be shared in such letter to keep the motivation level in employees in such hard time.

The demotion letter of such kind includes the revised salary patterns, the useful dates, the reasons etc. it is much better to include the revision and restoration policies in such letter.

The other type of demotion in salary is due to the work performance of an employee. The lack of expertise or negligence in official responsibility is the main cause to issue such letter against an employee.


See also: disciplinary decision of demotion of an employee

Sample -1

Demotion Letter for Salary DeductionPlease be advised that this is a formal notification of your demotion and reduction in salary.

This decision will come into effect from [DATE] and you will be demoted to the position of assistant manager. This decision has been taken by the mutual understanding and consensus of myself and all the directors.

We would like to highlight the factors due to which we have taken this decision. Your negligence at work and poor office manners have forced us to take this step. Please review the disciplinary laws of the company and do your best to abide by them.

With thanks